Proposition 19

Effective April 1, 2021 : Home owners 55 years of age and older, severely disable, or whos property was extensively Destroyed by wildfire or other natural disasters may be eligible to transfer the taxable value of their primary residence to a replacement, primary residence:

• Anywhere in California
• Of any value, but with upward adjustments if replacement is of greater value 
• Purchase or newly constructed within two years of sale
• Up to three times (previously one time) , but without limitations for properties destroyed by fire.

TAXATION OF INHERITED PROPERTY TRANSFERS 

Effective February 16, 2021:  Prop 19 narrows the rules allowing properties to pass from parent to child and grandparent to grandchild without an increase in the property tax bill.  the taxable value can be transferred.:

• To only those properties used as a primary home or farm by the child or grandchild
• If homeowner's exemption is filed within one year of transfer
• If the value of the property is less than 1M over the original tax basis. if the property value, at the time of transfers , is more than $1M over the original tax basis, some upward adjustment in assessed value would occur.

This data is provided for information purposes only and should not be substitution for legal advice. Please consult a tax advisor or legal counsel.